Connecticut ponders law on employee misclassification

The Daily Record Newswire The Connecticut legislature is considering a bill that would increase the penalties for employers who misclassify their workers as independent contractors, with greater civil penalties and criminal liability. House Bill 5204, An Act Implementing the Recommendations of the Joint Enforcement Commission on Employee Misclassification, has passed both the state House and Senate. It amends current law to establish a civil penalty of $300 per day per violation and adds criminal liability for employers who knowingly misrepresent one or more employees as an independent contractor. A company could also be subject to a "stop work" order for a knowing violation. If enacted, the law would take effect Oct. 1, 2010. The proposed legislation recognizes a trend in employment law, with an increasing number of lawsuits being filed alleging that employers misclassified workers as independent contractors in order to save money on overtime pay, benefits, the cost of unemployment insurance and workers' compensation. Published: Mon, May 31, 2010

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